A Fifth of Chinese Funding to UK Universities Came From US-Sanctioned Sources, Report Says

In this file image, a students arrives for their graduation ceremony at the Royal Festival Hall in London, England, on Oct. 13, 2015. Dan Kitwood/Getty Images

Up to a fifth of Chinese funding received by universities in the United Kingdom in the past five years came from sources sanctioned by the United States, according to a report published on Nov. 11.

When other sources with “demonstrable links with the Chinese military” are included, the proportion became up to one-third, according to the report, published by think tank Civitas: Institute for the Study of Civil Society.

Robert Clark, director of the Defence and Security Unit (DSU) at Civitas, authored the report.

Mr. Clark analysed Chinese funding declared by 46 universities in responses to Freedom of Information (FOI) requests that were received between 2017 and the 2022–2023 academic year.

The analysis show some £122 million to £156 million were received apart from fees from Chinese students during the period.

Of these funds, approximately £20 million to £30.5 million, or between 16 to 20 percent, “were subjected to U.S. sanctions at the time of funding.”

None of those entities are subject to UK sanctions, the report said.

The figures increased to about £36 million to £50.7 million, or between 30 to 33 percent, “when combined with additional Chinese entities which aren’t subjected to U.S. sanctions, but which nevertheless maintain demonstrable links with the Chinese military,” the report said.

Links to Chinese Military

Ten universities received at least three-quarters of their China-sourced funding from entities linked to China’s People’s Liberation Army (PLA).

For three of them—Cranfield University, the University of Westminster, and University of Huddersfield—all Chinese funding during the period came from PLA-linked sources.

Another five of the universities had between 90 to 99 percent of their Chinese funding coming from PLA-linked sources.

The report listed a number of “the most extreme cases,” including £1.81 million from China’s primary nuclear warheads research facility, almost half a million (£468,200) from China’s largest military aviation manufacturer, £10,000 from China’s largest hypersonic missile technology testing institute, £132,317 from the PLA’s largest supplier of precision guided missiles, up to £4.9 million from a military aerospace research institute, and up to £5 million from members of China’s Seven Sons of National Defence—seven Chinese universities that are “key drivers and architects of the Chinese Communist Party’s (CCP) militarisation.”

The largest single source of Chinese funding was Chinese telecommunications giant Huawei and its subsidiaries, which gave between £27.4 million and £38 million, or between 22 percent and 24 percent of all Chinese funding to these universities.

At least £13.9 million was received after the UK government announced it would kick Huawei out of its 5G networks due to security concerns.

When it comes to Confucius Institutes hosted at UK universities, 40 percent of all declared Chinese funding came from Chinese entities involved in Beijing’s military industrial complex, the report said.

The report stressed that none of the universities are accused of any wrongdoing, including knowingly assisting the development of the Chinese military, knowingly transferring information to that end, or committing any breach of their university regulations.

The research involved “may be used solely for non-military ends,” Mr. Clark wrote, adding that in some cases, the research may “simply help improve the business or academic position of a Chinese military-linked conglomerate or institution.”

Of the 88 universities contacted for information of its Chinese funding, 10 institutes rejected the FOI requests, with the primary reason cited being it would take longer than 18 hours to comply. Potential harm to corporate interests was also cited as a reason.

Other universities were excluded in the report because they declared no Chinese funding during the period, received less than £10,000 from nonmilitary-linked sources, or provided unusable data.

Reliance on Foreign Students

The funding declared does not include fees paid by Chinese students, which is about £2.2 billion per year, the report said.

In May, The Office for Students, a regulator of higher education institutions in England, warned universities that their overreliance on foreign students, “particularly from a single country such as China,” posed a key risk to their financial standing.

The number of first year non-UK domiciled students by domicile, 2006-2007 to 2021-2022. Data source: HESA. The Epoch Times

Mr. Clark urged the government to better align its sanctions policies and regimes with those of the United States, which “maintains an exhaustive Entity List” that details Chinese entities that either are a part of the PLA, controlled by it, or are linked to the PLA’s “nefarious activities.”

He also said the UK should ban any graduates of China’s Seven Sons of National Defence from studying at British universities and end all collaborations and receipts of donations from them.

To reduce the reliance on fee-paying Chinese students, he recommended two new special international fees programmes that would offer more competitive fees to Hong Kong students and students from the Commonwealth of Nations, “many of whom are some of the UK’s strongest allies and partners, and already add a rich contribution to UK higher education institutions.”

Mr. Clark also urged the government to remove the Chinese Students and Scholars Associations, the China Scholarship Council, and all Confucius Institutes in the UK.